Technical analysis of EUR/USD for 06/02/2019:
The trendline is broken, more downside in view
Technical market overview:
The EUR/USD market has broken below the trendline dynamic support around the level of 1.1434, tested the level from the downside (now resistance), and continued to move towards the lower price levels. The technical support at the level of 1.1411 has been violated as well and the price is currently trading just above the next support at 1.1395 in oversold market conditions. The momentum is still weak and negative, so it indicates the down move will last a little bit longer. There is no sign of any short-term trend reversal.
Weekly Pivot Points:
WR2 - 1.1577
WR1 - 1.1517
Weekly Pivot - 1.1454
WS1 - 1.1390
WS2 - 1.1330
Trading recommendations:
The downtrend continues so all the sell orders should be still open with a target at the level of 1.1390 - 1.1380 zone, because then a local pull-back is expected. The key level to the upside is seen at 1.1434 and only when this level is violated clearly, the short-term outlook might flip to more bullish.
